JetBlue-Spirit Airlines Merger Blocked, Terminated After Judge Rules Deal Would Hurt Competition
• JetBlue and Spirit Airlines terminate planned $3.8 billion merger after federal judge blocks deal on antitrust grounds • JetBlue to pay Spirit $69 million breakup fee as part of merger agreement • Judge ruled merger would reduce competition in airline industry, giving carriers more leeway to raise prices • Deal sought to help JetBlue and Spirit gain market share against 4 big U.S. airlines that dominate the market • Spirit stock price has plunged over 50% since ruling; JetBlue stock slightly up as merger seen as cost-saving